Tax Impact (3)
- National tax authorities have not yet make any official announcement regarding the granting of extensions or suspension of time limits for compliance with tax obligations, and to date nine municipal authorities have pronounced themselves through decrees, granting extensions and suspending deadlines. for compliance with municipal tax obligations.
- On April 2, 2020, the executive, by decree No. 4,171, exonerated individuals from the payment of Income Tax, whose net income obtained during fiscal year 2019, did not exceed the equivalent of 3 minimum wages in force as of December 31, 2019 (equivalent to Bs. 450,000.00). It is important to point out that said exemption was decreed and comes into force having already expired the term to file and pay the aforementioned tax. For more detailed information review our Lega Letter.
- By decree No. 4,166 dated March 17, 2020, the executive exempted only the Public Administration from the Import Tax, rate and VAT, for the importation of masks, mouth cap, and other respiratory devices. We invite you to review our Lega Letter for a more detailed information.
- Likewise, through resolution No. 011/2020 dated March 24, 2020, the list of tariff codes of “Appendix I” of Decree 4,080 dated December 26, 2020, which established the exemption from VAT, Import Tax, was expanded. and rate, to the definitive importation of certain products made by the organs and entities of the public administration, as well as those made with own resources by private individuals and legal entities. Some of the products included through Resolution No. 011/2020, are: products for human consumption (live animals of the bovine and porcine species, birds, yellow and white corn, fresh or refrigerated vegetables, cane sugar, among others), organic (including antibiotic active ingredients) and inorganic chemicals, some pharmaceuticals, and refrigerated or isothermal vehicles for the transport of goods. If you want a more detailed information please review our Lega Letter.
- However, SENIAT keeps its campaign exhorting taxpayers to comply with tax obligations by issuing communications through its social networks and even by sending individualized notifications and emails to special taxpayers. We consider that, in accordance with a correct interpretation supported within the framework of constitutional principles and the State’s obligation to preserve the fundamental right to health, within the framework of the State of Alarm decreed by the Executive, such notices, warrants and notifications will not take effect.
- On March 30, 2020, by Decree No. 005-2020, the extension of the period for the Declaration and Payment of the Tax on Economic Activities, Industry, Commerce, Services or Similar Nature of the Libertador Municipality of the Capital District was established for the fiscal period from 02/01/2020 to 02/29/2020, which may be paid until April 13, 2020. For a more detailed information review our Leg Letter.
- We insist that, even though there is no official pronouncement to date to agree to the postponement or suspension of deadlines for compliance with tax obligations, we consider that the measures adopted by the executive, regarding the declaration of the State of Alarm and quarantine, could prevent compliance with tax obligations for reasons of force majeure which, pursuant to the provisions of article 85 of the Organic Tax Code, constitute an exemption from liability for the commission of tax illicit acts. Additionally, article 5 of the Decree By means of which the State of Alarm is decreed to attend to the Sanitary Emergency of the Coronavirus (COVID-19) establishes the obligation of natural and legal persons to comply with its provisions and the direct responsibility of these for putting people’s health at risk for not complying with its content, which reaffirms the existence of force majeure reasons that impede the normal compliance with tax obligations.
At LEĜA we are very attentive to any pronouncement of the tax authorities and / or the executive on this matter, which we consider necessary and urgent for reasons of legal certainty, and we will be constantly updating the information to keep our clients informed timely and truthfully.
Contactos:
Jesús Sol Gil
jsol@lega.law
+58(0) 212 277 2209
Nathalie Rodríguez París
nrodriguez@lega.law
+58(0) 212 277 2212
El objetivo de este reporte es proveer información a los clientes y relacionados de LEĜA Abogados. La información contenida en este reporte es sólo a título informativo y no persigue suministrar asesoría legal. Los lectores no deben actuar sobre la base de la información contenida en este reporte, sin obtener previamente asesoría jurídica específica.Este reporte puede ser reproducidosy compartido total o parcialmente, indicando siempre la autoría de LEĜA Abogados.